The Securities and Futures Commission ("SFC") has ordered former executive director Zhang Wei of Coolpad Group Limited to pay HK$4 million in compensation and disqualify him for five years from directorship roles.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 05, 2026, the Securities and Futures Commission ("SFC") obtained a judicial order mandating Mr. Zhang Wei, a former executive director of Coolpad Group Limited, to pay HK$4 million as compensation to Coolpad for his involvement in a series of financial transactions that resulted in significant losses for the company.
Zhang Wei was also disqualified from serving as a director, liquidator, receiver, or manager of any listed or unlisted corporation in Hong Kong for a period of five years. Additionally, he was required to cover the SFC's legal costs in this matter.
Parallel to these proceedings, the SFC is continuing its legal action against six other former directors of Coolpad – Jia Yueting, Jiang Chao, Liu Jiangfeng, Liu Hong, Chan King Chung, and Xie Weixin. The SFC has identified that between 2016 and 2017, Coolpad and its subsidiaries entered into five transactions that led to approximately RMB2 billion being transferred to entities under the control of the company's former chairman and substantial shareholder. These transactions, conducted without proper authorization or disclosure to shareholders, resulted in Coolpad suffering losses of approximately RMB84 million.
The court determined that Zhang Wei was responsible for compensating Coolpad for part of the losses incurred. He confessed to breaching his fiduciary duties, including failing to act in good faith, not acting in the best interests of Coolpad, and not exercising independent judgment when approving two of the transactions and authorizing remittances for three. Moreover, he failed to ensure timely disclosure of auditors' concerns about the transactions and the company's solvency, as well as exercising reasonable care, skill, and diligence in investigating these transactions as a member of the independent board committee of Coolpad during the relevant period.
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